THE IMPACT OF BEHAVIORAL BIASES ON INVESTMENT BIAS: AN EMPIRICAL STUDY ON MSMES IN INDONESIA

Authors

  • Witjaksono Eko Hartoto Departmen of Management, Faculty of Economics and Business, Universitas Kristen Satya Wacana
  • Apriani Dorkas Rambu Atahau Departmen of Management, Faculty of Economics and Business, Universitas Kristen Satya Wacana
  • Supramono Supramono Departmen of Management, Faculty of Economics and Business, Universitas Kristen Satya Wacana

Abstract

This study aims to investigate the impact of behavioral biases, such as negative framing, illusion of control, overconfidence, and self-control, on investment bias. The data was collected through a field survey, with 200 respondents representing Troso ikat weaving micro, small, and medium enterprises (MSMEs) in Jepara, Indonesia. The data was analyzed using structural equation modeling (SEM) in SmartPLS. The results show that the illusion of control and overconfidence both have a positive impact on the investment bias; overconfidence mediates the impact of illusion of control on the investment bias; negative framing does not have a negative impact on the investment bias; and the self-control fails to moderate the significant impact of overconfidence on the investment bias.

Author Biography

Supramono Supramono, Departmen of Management, Faculty of Economics and Business, Universitas Kristen Satya Wacana

Department of Management

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Published

2024-08-05

Issue

Vol. 24 No. 1(39) (2024)

Section

Accounting and finance